Hotel Asset Managers Forecast RevPAR Growth Through 2027

Optimistic Outlook for 2026 Hotel Performance

Despite a challenging 2025 marked by widespread declines in revenue per available room (RevPAR), hotel asset managers are largely optimistic about the sector's performance in the current year.

According to the Hospitality Asset Managers Association's (HAMA) Fall 2026 Industry Outlook Survey, 47% of asset managers expect their portfolios to achieve year-over-year RevPAR growth of between 4% and 6% in 2026. An additional 25% of respondents project a RevPAR increase of 1% to 3% for the year.

Only a small fraction, less than 10%, anticipate flat or negative RevPAR performance this year, showing a strong positive shift from the previous period.

Continued Growth Anticipated for 2027

The positive sentiment extends into 2027, with the majority of hotel asset managers forecasting continued RevPAR gains. HAMA's survey indicates that 61% of asset managers foresee a 1% to 3% year-over-year RevPAR increase for the full year 2027.

Furthermore, a significant 35% of those polled expect even stronger growth, projecting RevPAR to rise between 4% and 6% in the coming year. This sustained confidence suggests a belief in the market's underlying strength, even as the industry navigates various economic and operational factors.

Key Concerns and Investment Trends

While the outlook remains positive, asset managers have identified several factors that could impede growth. The primary concerns cited in the HAMA survey include demand (56% of respondents), wage increases (44%), and labour availability (38%).

Other areas of concern encompass average daily rate (ADR) growth, union activity, increased insurance costs, and fluctuations in federal interest rates. On a more positive note, approximately 85% of asset managers do not expect the US economy to enter a recession in 2027, and 90% do not foresee forced sales or handing keys back to lenders for any properties in their portfolios.

This confidence is reflected in investment activity, with 68% of asset managers actively pursuing new acquisitions, and 88% engaged in planning or renovating existing properties.

Implications for Asia's Hotel Sector

For hotel operators across Asia, HAMA's global RevPAR forecasts suggest a generally favourable environment for revenue generation through 2027. Major gateway cities and resort destinations in markets such as Thailand, Singapore, and Japan, which have seen robust travel recovery, are likely to benefit from sustained demand.

However, the survey's highlighted concerns regarding wage increases and labour availability are particularly pertinent in many Asian economies, where staffing shortages and rising operational costs could temper overall profitability despite top-line growth.

Asian hotel groups will need to strategically manage labour expenses and continue adopting technology, such as the nearly 71% of asset managers globally now using artificial intelligence for reporting and analysis, to maintain competitive margins.